This article covers a developing story. Continue to check back with us as we will be adding more information as it becomes available.

UPDATE: 2023/07/19 14:31 EST BY LARA JACKSON

Microsoft merger delayed until October.

Today, July 19 2023, Microsoft and Activision Blizzard have agreed to extend the planned merger agreement to October. The proposed acquisition has been delayed in order to "resolve the UK regulatory situation." (via TheVerge).

After a long legal battle over Microsoft's acquisition of Activision Blizzard, a California judge has decided in favor of Microsoft by denying the Federal Trade Commission's preliminary injunction request. The Federal Judge, Jacqueline Scott Corley, ruled against the FTC in a 53-page decision following a five-day hearing that included testimonies from many industry figures such as Microsoft Gaming CEO Phil Spencer and Sony Interactive Entertainment CEO Jim Ryan.

Phil Spencer expressed his gratitude in a tweet, also reaffirming the commitment Microsoft has to bring games to more people rather than restricting access as the company was accused of by the FTC. According to the FTC, Microsoft's plans to purchase Activision Blizzard would ultimately harm consumers by providing less competition within the console games market. Microsoft, in turn, felt that the acquisition would be beneficial for countering the ever-growing presence that Sony has been gaining.

Much of the debate focused specifically on the franchise Call of Duty, leading Spencer to issue a promise to the court that the popular shooter would not be removed from the PS5 system.

Microsoft's Activision-Blizzard Deal Is A Record-Breaking Acquisition

xbox series s and x consoles over an image of multiple xbox exclusive games

Microsoft's acquisition of Activision Blizzard King is a record-breaking move for being the most expensive video game industry acquisition. The value of the deal is a proposed $68.7 billion. It encompasses huge franchises such as World of Warcraft, Diablo, Call of Duty, Candy Crush, and more. The next largest deal took place in 2022 when Zynga acquired Take-Two Interactive for $12.7 billion.

Related: Microsoft Is The Games Industry's Disney

Microsoft's Activison Blizzard Acquisition Still Faces Opposition In The UK

Xbox, actvision and microsoft logos on black background with overwatch, diablo, COD, WoW, Candy Crush and Starcraft beneath

The UK's Competition and Markets Authority (CMA) still presents a hurdle for Microsoft as the July 18 deadline for completing the acquisition looms closer. The CMA has been blocking the acquisition from taking place in the UK due to concerns over cloud gaming, but is now agreeing to negotiate a remedy, as was recently tweeted by The Verge senior editor Tom Warren.

Now that the legal battle in the United States between the FTC and Microsoft has reached a favorable verdict for the Blizzard Activision deal (barring the potential for an appeal from the FTC), the CMA is currently the last regulatory committee blocking the acquisition from going through. This court decision regarding the FTC's concerns is a huge win for Microsoft and paves the way for the acquisition to finally be solidified. Assuming that Microsoft and the UK's CMA can successfully reach a compromise, the Activision Blizzard deal will set a record as the largest video game industry acquisition of all time.

Source: Phil Spencer/Twitter, Tom Warren/Twitter

Editor’s Note: A lawsuit has been filed against Activision Blizzard by the California Department of Fair Employment and Housing, which alleges the company has engaged in abuse, discrimination, and retaliation against its female employees. Activision Blizzard has denied the allegations. The full details of the Activision Blizzard lawsuit (content warning: rape, suicide, abuse, harassment) are being updated as new information becomes available.